10 Ways to Cut on Your Car Insurance Costs and Not Your Coverage

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With car insurance rates rising again, some people might feel like it is becoming a luxury rather than a necessity. The people suffering the most are those with lower credit score ratings, larger families, or those who might not have a perfect driving record. Although there isn’t really a way around it, there are a few things you can do to reduce your monthly premiums dramatically

Compare Rates on a Regular Basis

Many people stay with the same insurance company for life, believing that this will lower their premiums. This is not always the case, we have heard many stories from people who had this same mindset, and when the day came when they finally had to submit a claim, they received no special treatment. In fact, they realized that they were just another customer to the insurance company and that nothing was gained from the years and years being a faithful client. Do remember that you will not always find lower premiums when comparing quotes, but there is still a chance – and this might be the perfect opportunity for you to change insurance companies!

Comparing insurance companies is easy, especially with websites like Insure.com and InsurAcar. All you need to do is to complete a simple form to get contacted by agents who will help you. Another thing you can do is to find an independent agent who will be able to give you quotes from different carriers on a regular basis.

Regularly Review Your Coverage

Reducing your liability limits to the state minimums is something many people do to save on their insurance. Don’t fall into this trap. It is better to get more coverage, as this will prevent you having to risk your life’s savings the day you have an expensive claim, thus saving money in the long-run.

Other things to review may include rental reimbursement coverage. Do you have another vehicle that you can use when yours is in for repairs? If so, then this is something you can exclude from your policy. Do you have an auto-club membership? Then remove the roadside assistance from your vehicle cover policy if applicable.

Check for Discounts You Can Use

It may not always seem worthwhile, but sometimes insurers will offer significant discounts if you have a low-risk lifestyle. These may include:

  • New drivers who completed a driver-training course.
  • Older drivers who completed refresher courses.
  • Anyone who completed a defensive-driving course.
  • Students who have good grades.
  • Members of certain affinity groups, which may include college students or certain professions.
  • Vehicles with safety equipment or anti-theft systems installed.

Ensure Your Deductible is set to the Right Amount

The deductible is the minimum amount you have to pay when a claim is made. This can be increased to dramatically decrease your insurance premium. Just remember, that if you change your deductible from $300 to $500, you will have to pay $500 in case of a collision. Change this amount to something you can afford, while still keeping your premium at an affordable amount.

Choose an Insurer with a Good Rating

Finding an insurer with the cheapest premium isn’t necessarily what you are after. Before choosing an insurer, be sure to read some of their online ratings to determine if they will be right for you. Remember, a lower premium sometimes means that the insurer forces you to by original parts, hassles repair shops to cut corners and take chances or dramatically increases your premium once you make a claim. This is not always the case, but it is worth doing some research beforehand to ensure that most customers are happy with the service they have received.

Take Insurance into Consideration When Buying a Vehicle

The model of the vehicle is one of the biggest factors when it comes to calculating your car insurance premium. This alone can determine whether your premium will be high or low. Next time you have to decide between two or more cars and find it hard to make up your mind, do a bit of research to see what the respective insurance premiums will be. This might make your decision a lot easier than you might think!

Manage Teen- Driver Risk

Adding a teenager to your insurance policy can increase your premiums drastically, sometimes as much as 100%! Let your teenagers take a safe-driving course and ensure that they know that unsafe driving will mean the loss of their driving privileges. Also, let your insurer know if your child doesn’t have a license, if he/she is a student (or lives away from home), or if he/she doesn’t own a car. All of these may reduce the additional premium you will have to pay.

Multiple Policies from One Insurer

If you have found the right insurance company, you may want to consider getting other insurance policies from them as well, for example home and contents or even life insurance. Sometimes getting all your policies from one insurer will save you a lot of money.

Tip of the day: This may differ from country to country, but we have received reports from many users that when they combine their home and car insurance, their monthly premium is lower than what it would have been for car insurance alone! Many of these reports came from countries like South Africa, but is is definitely something to look into next time you buy insurance!

Ensure a Good Credit Score

It is no secret that many insurance companies use your credit score when calculating your monthly premiums. By ensuring that your score is kept in good condition may also decrease your premiums.

Reduced Mileage Report

Another factor that determines your premiums is the miles you drive each year. If you have changed jobs, work from home or retired recently, let your insurance company know. This may also be a good reason for them to lower your monthly premium.

We hope that this article was educational and informative. Please leave your comments or questions below.